The deal between Sprint (SoftBank) and T-Mobile (Deutsche Telekom) is getting closer to a realization. Well between the two companies at least, as SoftBank is closing the financing from multiple banks to make the deal happen. There hasn’t been a set number on the deal, but that hasn’t stopped SoftBank from getting financed for $45 billion. The full amount is not just from one bank but from multiple banks. Making the list of financiers is Bank of America, JPMorgan, and CitiGroup. Since there is no finalized number between SoftBank and Telekom, the overall amount could be reduced to $40 billion at any time. The financing is coming before negotiations begin mostly because both companies seem like they are on the same page, so in order to begin, SoftBank will need to make an offer. Both SoftBank Chairman, Masayoshi Son, and Sprint CEO, Dan Hesse, are expected to come to an offer soon, however they still have the US Government to win over.

In meetings with the Department of Justice, and the FCC, Son and Hesse didn’t quite get the feeling they have convinced anyone. They continue to argue that the way to fight Verizon and AT&T in the mobile carrier market, is together with T-Mobile. That would bring the competition down a bit, especially with T-Mobile making as much noise as they are alone already.

Like we have said before, the US Government will be the end of this deal, if there is one. Both SoftBank and Telekom have agreed not to continue with negotiations or deal terms, until they get a better response. SoftBank doesn’t want to fall into the same mistake that AT&T did when they tried this process. AT&T was left with no T-Mobile, but still had to pay up. Just incase you have forgotten, AT&T had to give T-Mobile $3 billion in cash and $1 billion worth of AT&T spectrum. All of that simply because the deal was stopped, and AT&T pulled out. Now look at AT&T, going blow for blow against T-Mobile. It seems as though SoftBank may have learned from AT&T’s mistake and is going to take things slow.

Still, funding was needed, and now SoftBank has what they will need to go ahead and continue the process. They are just waiting for a better vibe from the US Government. What do you think about the deal, is SoftBank correct in saying this is the only way the third and fourth place carriers can fight against AT&T and Verizon, or is T-Mobile handling them just fine on their own?